The use of monetary policy to shift aggregate demand to the right in a severe recession is like:
A) Pushing on a string
B) Putting all eggs in one basket
C) Pulling on one's purse-strings
D) Pushing the envelope

Question

Quizplus · Accepted Answer

In a severe recession, monetary policy may be less effective because interest rates are already low, and people may not be willing to borrow or spend, similar to the metaphor of "pushing on a string," where pushing does not effectively move the string.

The Use of Monetary Policy to Shift Aggregate Demand to the Right